I have done this many times in the past without any issues. Not sure what is wrong here.

Outa curiousity I tried applying the mst to the msi and it applied just fine. The new msi installs fine with all my changes in it. Thing is I do not want to apply the mst as I will have multiple different mst based on the different departments this packages is used in.

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emuringer,

I am wondering if you are running into the same issue I did just a few weeks ago. The cause was the transform required a newer version of the Windows Installer environment. Installing Windows Installer 3.1 v2 resolved it for me.

To verify whether or not this is your issue, enable verbose Windows Installer logging, run the install again, and read the log.

I think Craig is right installing the new windows installer service resolves most of the installshield problems. However I would still prefer that you should switch on the verbose to get this rectified.

Old thread, but still.
I know transforms is a public property. But thereÃ‚Â´s no problem installing a package with a command like e.g:
"msiexec.exe /i msiname.msi Transforms=mstname.mst /qb
on a Win XP or Win 7

So, when does any problems arise for using "Transforms=" instead of "TRANSFORMS="?